DOJ's FBI awards $56.3M contract for management consulting, raising value-for-money questions

Contract Overview

Contract Amount: $56,339,654 ($56.3M)

Contractor: ECS Federal, LLC

Awarding Agency: Department of Justice

Start Date: 2018-09-28

End Date: 2022-09-22

Contract Duration: 1,455 days

Daily Burn Rate: $38.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: POCATELLO, BANNOCK County, IDAHO, 83201

State: Idaho Government Spending

Plain-Language Summary

Department of Justice obligated $56.3 million to ECS FEDERAL, LLC for work described as: IGF::OT::IGF Key points: 1. Contract value of $56.3M over 4 years suggests significant investment in consulting services. 2. The use of Time and Materials pricing may lead to cost overruns if not carefully managed. 3. Full and open competition was utilized, indicating a broad market search for qualified bidders. 4. The contract was awarded to ECS FEDERAL, LLC, a single entity, warranting a review of performance history. 5. The Administrative Management and General Management Consulting Services NAICS code points to a broad scope of potential services. 6. The contract's duration of 1455 days (approx. 4 years) allows for substantial project execution but also carries long-term risk. 7. The contract was an "ID" (Indefinite Delivery) type, suggesting a need for ongoing services rather than a fixed project. 8. The contract was awarded as a Delivery Order, implying it's part of a larger IDIQ vehicle.

Value Assessment

Rating: questionable

The contract's total value of $56.3 million over approximately four years for administrative and management consulting services appears substantial. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The Time and Materials (T&M) pricing structure, while flexible, carries inherent risks of cost escalation if not rigorously monitored and controlled by the agency. Comparing this to similar contracts for management consulting services would be necessary to determine if the pricing is competitive and if the expected outcomes justify the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that the agency sought proposals from all responsible sources. The data indicates only one award was made ('no': 1), which, despite the open competition, could imply a limited number of highly qualified bidders or a strategic decision to consolidate services with one provider. The level of competition is generally positive for price discovery, but the single award warrants further investigation into the bidding landscape.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to secure the best value by encouraging a wide range of offers. However, with only one award resulting from this process, taxpayers may not have benefited from the full spectrum of potential cost savings that a more robust bidding environment might have produced.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, likely receiving enhanced administrative and management support. Services delivered could range from strategic planning and organizational efficiency improvements to process optimization and operational support. The geographic impact is likely national, supporting FBI operations across various locations. Workforce implications could include support for FBI personnel, potentially impacting efficiency and effectiveness of federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Risk of cost overruns due to Time and Materials pricing structure.
Potential for scope creep without clear performance metrics and oversight.
Dependence on a single contractor for critical management functions.
Lack of transparency regarding specific services rendered and their impact.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to inefficient service delivery if not tightly managed.

Positive Signals

Awarded through full and open competition, indicating a broad market search.
Contract duration allows for sustained support and potential for long-term improvements.
The contractor, ECS FEDERAL, LLC, has secured a significant federal contract, suggesting some level of established capability.
The contract is for management consulting, which can drive efficiency and effectiveness within the agency.

Sector Analysis

The Administrative Management and General Management Consulting Services sector is a significant part of the federal contracting landscape, supporting agencies across various functions. This contract falls within a broad category of professional services. Comparable spending benchmarks would typically involve analyzing the average cost of similar consulting engagements across federal agencies, considering factors like contract duration, scope of work, and contractor experience. The market for these services is competitive, with numerous firms offering expertise in organizational strategy, process improvement, and operational efficiency.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses ('ss': false, 'sb': false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The focus remains on large business participation or direct award to a qualified entity.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Justice and the Federal Bureau of Investigation. Specific oversight mechanisms would likely include contract performance reviews, regular reporting requirements from the contractor, and potentially the establishment of a dedicated contract officer's representative (COR). Accountability measures would be tied to the contract's performance standards and deliverables. Transparency would depend on the agency's policies regarding the disclosure of contract details and performance information.

Related Government Programs

Management and Consulting Services
Professional Services Contracts
Federal Bureau of Investigation Support Contracts
Department of Justice Contracts
Indefinite Delivery Contracts

Risk Flags

Time and Materials Pricing
Long Contract Duration
Single Award from Open Competition
Broad Service Category (NAICS 541611)

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $56.3 million to ECS FEDERAL, LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ECS FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $56.3 million.

What is the period of performance?

Start: 2018-09-28. End: 2022-09-22.

What is the specific scope of work and key performance indicators (KPIs) for this $56.3 million contract awarded to ECS FEDERAL, LLC?

The provided data indicates the contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' However, the specific scope of work and key performance indicators (KPIs) are not detailed in the provided summary. Typically, such contracts would involve services like strategic planning, organizational analysis, process improvement, operational efficiency studies, and management support. Without access to the full contract document or performance reports, it's impossible to ascertain the precise deliverables, expected outcomes, or the metrics used to evaluate ECS FEDERAL, LLC's performance. The broad nature of the NAICS code suggests a wide range of potential activities, making detailed oversight crucial to ensure value for money.

How does the Time and Materials (T&M) pricing structure for this contract compare to other similar management consulting contracts within the federal government?

Time and Materials (T&M) contracts offer flexibility but can be prone to cost overruns if not managed diligently. Compared to fixed-price contracts, T&M contracts are generally considered higher risk for the government in terms of cost certainty. For management consulting services, fixed-price or cost-plus-fixed-fee structures are often preferred for well-defined scopes to ensure better cost control. The FBI's choice of T&M for a $56.3 million contract over four years suggests either a highly uncertain scope or a strong confidence in their ability to manage contractor hours and rates effectively. Benchmarking against similar T&M contracts for consulting would reveal if the hourly rates and estimated total cost are within market norms, but the inherent risk of T&M remains a point of concern.

What is ECS FEDERAL, LLC's track record with federal contracts, particularly in administrative and management consulting services?

ECS FEDERAL, LLC has been awarded this $56.3 million contract by the Department of Justice's FBI, indicating a level of trust and capability recognized by the agency. To assess their track record thoroughly, one would need to examine their past performance on similar federal contracts. This includes reviewing contract values, durations, types of services rendered, past performance evaluations (if publicly available), and any history of contract disputes or awards. A positive track record with successful delivery of complex consulting projects would mitigate some of the risks associated with this large award. Conversely, any history of performance issues or cost overruns on previous contracts would raise concerns about their ability to meet the FBI's needs effectively and efficiently.

Given the 'full and open competition' and a single award, what does this imply about the market for these specific consulting services?

The fact that the contract was awarded under 'full and open competition' suggests the government sought proposals from all eligible sources. However, the data indicates only one award ('no': 1). This could imply several things about the market for these specific administrative and management consulting services: 1) There may be a limited number of highly specialized firms capable of meeting the FBI's requirements, making the competition effectively narrow despite the open solicitation. 2) ECS FEDERAL, LLC may have submitted a significantly superior proposal in terms of technical merit, past performance, and price, outcompeting all other bidders. 3) It's possible that while many bid, only one was deemed fully qualified or responsive. This scenario warrants further investigation into the number of proposals received and the reasons for the single award to understand the true competitive landscape.

What are the potential risks associated with the 1455-day duration of this contract?

A contract duration of 1455 days (approximately four years) presents several potential risks. Firstly, the longer the contract, the greater the potential for cost escalation, especially with a Time and Materials (T&M) pricing structure, as unforeseen issues or scope changes can increase labor hours and material costs over time. Secondly, agency needs and priorities can shift significantly over a four-year period; the services required at the end of the contract might differ substantially from those initially defined, potentially leading to misalignment or the need for costly modifications. Thirdly, long-term reliance on a single contractor can sometimes lead to complacency or a decrease in the contractor's incentive to innovate or maintain peak performance. Finally, institutional knowledge may become concentrated within the contractor, potentially creating a dependency that is difficult to transition away from.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: ON Assignment, Inc.

Address: 2750 PROSPERITY AVE STE 600, FAIRFAX, VA, 22031

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,956,202

Exercised Options: $56,956,202

Current Obligation: $56,339,654

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F0003W

IDV Type: FSS

Timeline